Ruqayyah Snyder
Australia's energy sector is a mix of government-owned and privately owned companies. While some people prefer to support local energy retailers, others may prioritise cost-effectiveness. The Australian government has committed to the Renewable Energy Target (RET) to reduce greenhouse gas emissions by transitioning to renewable energy sources, with over 400 accredited large-scale renewable energy power stations in operation as of 2021. The largest providers are often partly or wholly owned by foreign entities, such as EnergyAustralia, which is a subsidiary of Hong Kong-based CLP Group, previously owned by the New South Wales Government. Other government-owned energy companies include Ergon Energy (Queensland Government), Synergy (Western Australian Government), and Aurora Energy (Tasmanian Government).
| Characteristics | Values |
|---|---|
| Government-owned energy companies | Ergon Energy, Stanwell, Synergy, Aurora Energy, CovaU, Diamond Energy, Discover Energy, Future X Power, GEE Energy, GloBird Energy, Glow Power, Smart Energy, Sumo, Tango Energy, 1st Energy, Kogan, Amber Electric, Energy Locals, Arcline, and more. |
| Partially government-owned energy companies | EnergyAustralia (formerly owned by the New South Wales government), Origin Energy (ASX-listed with shareholders worldwide), Delta (formerly owned by the New South Wales government), and more. |
| Foreign-owned energy companies | Alinta Energy (owned by Hong Kong-based Chow Tai Fook), EnergyAustralia (owned by Hong Kong-based CLP Group), InterGen (owns power plants in Australia and the UK), Rio Tinto (multinational corporation), NRG (Texan energy company with a share in Gladstone Power Station), Sumitomo Group and Kansai Electric (Japanese business groups), and more. |
| Energy sources | Oil and other fossil fuels, liquefied natural gas (LNG), coal, coal seam methane (CSM), biomass, biodiesel, solar power, wind power, hydro, geothermal, and more. |
| Energy policies and targets | Renewable Energy Target (RET) to reduce greenhouse gas emissions and transition to renewable energy sources. |
| Energy exports | One of the largest exporters of LNG, coal, and minerals. |
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What You'll Learn
Foreign ownership of Australia's energy companies
Australia's energy sector is a mix of government-owned, locally owned, and foreign-owned companies. While some people prefer to support local energy retailers, others may prioritise cost-effectiveness or renewable energy options.
Some of the largest energy providers in Australia are partly or wholly owned by foreign entities. EnergyAustralia, one of the "big three" energy retailers, is a wholly-owned subsidiary of Hong Kong-based CLP Group. Origin Energy, the largest provider of electricity and natural gas in Australia, is only partly Australian-owned, as it is an ASX-listed company with shareholders worldwide. Alinta Energy, another Australian energy generation and retail company, was acquired by Hong Kong-based Chow Tai Fook Enterprises in 2017.
On the other hand, some energy companies are owned and managed by state governments in Australia. For example, Synergy, the state's largest generator of power, is entirely owned by the Western Australian Government. Ergon Energy and all its subsidiaries are owned by the Queensland Government. Similarly, Aurora Energy is 100% owned by the Tasmanian Government. Stanwell, an electricity generation company that owns two of Australia's most efficient coal-fired power plants, is owned by the Queensland Government.
Some Australian energy companies are locally owned and operated, such as Amber Electric, which is owned by Australian co-CEOs and backed by Australian investors. Discover Energy is another example of a company that is 100% Australian-owned and run by a group of innovators challenging traditional energy supply models.
The ownership structure of energy companies in Australia varies, and it can be challenging to determine at a glance which companies are Australian-owned and which are part of foreign conglomerates.
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Australian government's Renewable Energy Target (RET)
Australia's energy is supplied by a mix of government-owned and private companies. Some of the major government-owned energy companies include:
- Ergon Energy (Queensland Government)
- Stanwell (Queensland Government)
- Synergy (Western Australian Government)
- Aurora Energy (Tasmanian Government)
On the other hand, some of the largest private energy providers include Origin Energy, EnergyAustralia, and AGL, which are only partly Australian-owned and have foreign shareholders.
The Australian government has committed to the Renewable Energy Target (RET) to reduce greenhouse gas emissions and increase renewable electricity generation. The RET comprises two schemes: the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES). The LRET incentivises investment in large-scale renewable energy power stations by providing them with large-scale generation certificates (LGCs). These power stations can then sell the LGCs to electricity retailers or companies that want to demonstrate renewable energy use. The SRES, on the other hand, issues small-scale technology certificates for the installation of eligible systems like rooftop solar panels and solar water heaters.
The RET sets a target of delivering an extra 33,000 gigawatt-hours (GWh) of electricity from renewable sources every year from 2020 to 2030. This target was met in January 2021, with over 33 million large-scale generation certificates surrendered that year. The RET creates a market for renewable energy certificates, increasing demand for renewable energy and stimulating investment in renewable energy technologies, ultimately reducing the cost of renewable energy.
In addition to the RET, the Australian government has implemented other initiatives to support the development of renewable energy. For example, the Gillard government introduced an expanded target of 45,000 GWh of additional renewable energy between 2001 and 2020. The Australian Renewable Energy Agency (ARENA) was also established in 2012 to improve the competitiveness of renewable energy technologies and increase the supply of renewable energy through innovation.
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Australian-owned energy companies
Australia's energy sector is a mix of government-owned and privately owned companies. While some people prefer to do business with local energy retailers, others may prioritise cost as the most important factor in their decision-making.
Some energy companies are owned and managed by state governments in Australia. For example, EnergyAustralia was previously owned by the New South Wales state government but is now owned by the Hong Kong-based CLP Group. Other government-owned energy companies include:
- Aurora Energy, which is 100% owned by the Tasmanian Government.
- Ergon Energy, owned by the Queensland Government, along with all its subsidiaries.
- Synergy, entirely owned by the Western Australian Government and the state's largest generator of power.
- Stanwell, owned by the Queensland Government, which owns two of Australia's most efficient coal-fired power plants.
There are also many Australian-owned energy companies that are independent of government ownership. These include:
- Amber Electric, founded in 2017 and owned by co-CEOs Chris Thompson and Dan Adams, with backing from Australian investors.
- Diamond Energy, which is confirmed to be 100% Australian-owned.
- Smart Energy, which claims to be 100% Australian owned and operated.
- Sumo, which claims to be a 100% Australian-owned company with local employees based in Melbourne.
- GloBird Energy, claimed to be 100% Australian-owned and based in Melbourne, describing itself as 'fiercely independent'.
- GEE Energy, a 'proudly independent' and 100% Australian-owned and operated energy retailer based in Brisbane.
- Future X Power, an Australian-owned electricity provider based in Brisbane, Queensland.
- Discover Energy, which is 100% Australian-owned and run by a group of innovators and IT geeks.
- Lumo, which is Australian-owned and keeps profits within Australia.
- AGL, which is publicly listed in Australia, meaning not all shareholders are local, but some consider this close enough to Australian ownership.
Additionally, it is worth noting that some energy companies that were previously Australian-owned have since been acquired by foreign entities. For instance, EnergyAustralia, mentioned earlier, is now a wholly owned subsidiary of the Hong Kong-based CLP Group. Similarly, Alinta Energy, an Australian energy generation and retail company, was acquired by the Hong Kong-based Chow Tai Fook corporation in 2017. Tango Energy, previously known as Pacific Hydro, was acquired by China's State Power Investment Corporation in 2016.
The Australian government has committed to the Renewable Energy Target (RET), aiming to reduce greenhouse gas emissions by transitioning to renewable energy sources. There are over 400 accredited large-scale renewable energy power stations in Australia, with around 30% of the country's electricity generated from renewable sources in 2021.
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State-owned energy companies
Australia's energy sector is a mix of state-owned and privately-owned companies, with some of the largest providers being partly or wholly owned by foreign entities. While it is challenging to determine which companies are truly Australian-owned, here is a list of state-owned energy companies in Australia:
Aurora Energy
Aurora Energy, established in 1998 following the breakup of the Tasmanian Hydro Electric Commission, is 100% owned by the Tasmanian Government. It operates under the Corporations Act 2001, with the Minister for Energy and the State Treasurer acting as its two shareholders.
Ergon Energy
Ergon Energy is a Queensland Government-owned energy retailer, with all its subsidiaries being wholly Australian-owned.
Synergy
Synergy is a Western Australian Government-owned electricity and gas company, the state's largest generator of power, with over a million retail customers. It operates without any private interest, and there are no plans for privatisation.
Stanwell
Stanwell, owned by the Queensland Government, is an electricity generation company that owns two of Australia's newest and most efficient coal-fired power plants: Stanwell in Rockhampton and Tarong North in the South Burnett. Stanwell is Queensland's largest energy generator and Australia's third-biggest emitter of greenhouse gases.
Delta Electricity
Delta Electricity was formed by the New South Wales government in 1996 as part of its reform of the electricity sector. It was subsequently sold to Sunset Power International in November 2015 and currently owns a portfolio of thermal coal power sites, including the large Vales Point B coal-fired power station in New South Wales.
EnergyAustralia
EnergyAustralia was originally a state-owned enterprise of the New South Wales Government. However, in 2011, it was acquired by CLP-owned TruEnergy, and the distribution service was retained by the government and renamed 'Ausgrid'. EnergyAustralia is now a wholly-owned subsidiary of the Hong Kong-based CLP Group.
While some Australians prefer to support local energy retailers, others may prioritise cost or other factors when choosing an energy provider. The Australian government has committed to the Renewable Energy Target (RET), aiming to reduce greenhouse gas emissions by transitioning to renewable energy sources.
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EnergyAustralia's greenwashing lawsuit
Australia's energy sector is a mix of government-owned and privately-owned companies. Some of the major players include EnergyAustralia, Origin Energy, and AGL, which are all Tier 1 energy retailers. While EnergyAustralia was previously owned by the New South Wales state government, it is now a wholly-owned subsidiary of the Hong Kong-based CLP Group. Other government-owned energy companies include Ergon Energy in Queensland, Synergy in Western Australia, and Aurora Energy in Tasmania.
In recent news, EnergyAustralia has faced a lawsuit from an environmental advocacy group, Parents for Climate, accusing the company of greenwashing. The group launched its legal action in 2023, alleging that EnergyAustralia misled 400,000 customers about its 'Go Neutral' product, which involved buying carbon credits to offset pollution from fossil fuel energy use. This case is significant as it is the first time an Australian energy retailer has faced legal consequences for alleged greenwashing, and it highlights the growing concern over the accuracy of carbon-neutral marketing claims.
The outcome of the lawsuit has resulted in EnergyAustralia apologizing to its customers and agreeing to settle the legal battle. In its statement, EnergyAustralia acknowledged that carbon offsetting is not the most effective method for customers to reduce their carbon emissions. This settlement sends a strong message to other companies, emphasizing the need to hold them to higher standards and prevent the negative impacts of greenwashing on both the environment and consumers.
Greenwashing refers to the practice of making a product or service appear more environmentally friendly than it actually is. In the case of EnergyAustralia, the company's 'Go Neutral' product was marketed as a way for customers to offset their carbon emissions. However, the product did not actually remove emissions, as it relied on carbon credits while still sourcing energy predominantly from fossil fuels. This misleading marketing led to the lawsuit and subsequent settlement.
The EnergyAustralia greenwashing lawsuit has brought attention to the issue of greenwashing in the energy sector and beyond. It has prompted discussions about the need for clearer guidelines and legislation to protect consumers from vague or misleading environmental claims. The Australian Competition and Consumer Commission has released principles to guide businesses in their environmental claims, but some advocates argue that these principles need to be strengthened and enforced to prevent greenwashing. This case sets a precedent for holding companies accountable for their environmental marketing and ensuring that their products and services genuinely contribute to sustainability.
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Frequently asked questions
No, Australia's energy is not entirely owned by the government. While some energy companies are owned and managed by state governments, such as Ergon Energy in Queensland, Synergy in Western Australia, and Aurora Energy in Tasmania, there are also many energy companies that are partially or completely owned by foreign entities.
Some energy companies owned by the Australian government include Ergon Energy, Synergy, and Aurora Energy. Additionally, the New South Wales government owns the distribution service Ausgrid, previously a part of EnergyAustralia.
Yes, there are several energy companies that are 100% Australian-owned and operated by private investors. These include Smart Energy, Sumo, Diamond Energy, Discover Energy, and GloBird Energy.
Yes, several foreign-owned energy companies operate in Australia. For example, EnergyAustralia is owned by the Hong Kong-based CLP Group, and Tango Energy was acquired by China's State Power Investment Corporation in 2016. Additionally, Origin Energy, one of Australia's largest energy providers, is only partially Australian-owned as it is listed on the ASX with shareholders worldwide.
Yes, the Australian government has committed to the Renewable Energy Target (RET), which aims to reduce greenhouse gas emissions by transitioning to renewable energy sources. As of 2021, around 30% of Australia's electricity was generated from renewable sources, and there are over 400 accredited large-scale renewable energy power stations in the country.
